Food Stamp Reform Act of 1985

Food Stamp Reform Act of 1985 - Title I: Definitions - Amends the Food Stamp Act of 1977 to provide for charging households for allotments, except households containing an elderly or disabled member and households with less than a specified income. Provides for the deposit of such charges in a separate account maintained by the Treasury. Requires State agencies to institute procedures for the deduction of household allotment charges from payments a household receives under Aid to Families with Dependent Children (AFDC) of the Social Security Act and to have allotments distributed with such payments.

Grants State agencies the option of determining whether or not individuals who live with others constitute a separate household.

Removes certain provisions for adjusting the thrifty food plan and the excess shelter expense deduction.

Title II: Eligible Households - Makes certain households ineligible for the food stamp program if such a household's income exceeds a specified poverty line. (Currently such households cannot exceed the poverty line by more than 30 percent.)

Includes nonrecurring lump-sum payments and energy assistance payments as household income.

Decreases the monthly household income standard deduction from $85 to $60.

Permits States to establish resource limitations comparable to eligibility determinations under the Social Security Act for the AFDC program and the supplemental security income program.

Title III: Eligibility Disqualifications - Reduces from six to three years the maximum age of a dependent child which exempts an individual from work registration. Continues such exemption for any individual caring for a child between three and six where adequate child care is not available.

Title IV: Issuance and Use of Coupons - Prohibits the issuance of cash change from purchases made with food stamp coupons. Requires coupon users to pay cash for amounts which exceed the value of the lowest coupon denomination.

Title V: Value of Allotment - Eliminates the $10 minimum value of allotments.

Title VI: Administration - Grants States the option of providing expedited service to certain families in immediate need of coupons. (Currently States are required to provide such service.)

Requires the issuance of photographic identification cards to all household members (currently, such cards are required only in certain areas). Requires a household member to countersign coupons at the times of issuance and use.

Title VII: Collection and Disposition of Claims - Sets forth procedures for the collection of an overissuance of food stamp coupons through unemployment compensation benefits.

Title VIII: Administrative Cost-Sharing and Quality Controls - Revises State agency liability provisions to make such agencies liable for payment error rates above three percent.

Title IX: Effective Date - Declares the amendments made by this Act effective on October 1, 1985, unless otherwise provided.